THE DANUBE POLLUTION REDUCTION PROGRAM

P.O. Box 500, A-1400 VIENNA, AUSTRIA

The Convention on Cooperation for the Protection and Sustainable Use of the River Danube (Danube River Protection Convention - DRPC), was signed in Sofia in June 1994 by eleven Danube River Basin countries¹ and the European Commission. The signatories to the Danube Protection Convention, which is based on the UN-ECE framework Convention on the Protection and the Use of Transboundary Watercourses and International Lakes (Helsinki Convention), have agreed on « conservation, improvement and rational use of surface and groundwater in the catchment area, to control the hazards originating from accidents and to contribute to reducing the pollution loads of the Black Sea from sources in the catchment area ».

Nine parties must ratify the Convention before it comes into force. Until end 1997, eight signatories had ratified the Convention and it is expected that the ninth ratification will occur in due course so that the Convention is expected to be in force in mid-1998. Hence, four years of preparatory work and negotiations were necessary to put in place administrative and legal mechanisms for inter-regional cooperation and definition of common goals and measures for pollution reduction in the Danube River Basin.

However, the initiatives to establish the Environmental Program for the Danube River Basin, conceived already in 1991, started in 1992. In this context, the elaboration of the Strategic Action Plan (SAP) in 1994 for the period from 1995 to 2005 has been a major accomplishment and a basis for all further interventions at the national level and for donor support in the frame of the Program Coordination Unit (PCU)² .

The political evolution and economic disparities of the Danube River basin countries makes it particularly difficult to reach common agreements on standards and targets and financial commitments to implement measures and projects for effective pollution reduction³ . Whereas Austria and Germany have improved over time water quality in line with national and European standards, the Middle and East European countries, faced with serious economic problems, have serious difficulties to meet these goals. One of the driving forces of the countries in transition⁴ is to join or to link with the European Union which makes it necessary to adopt European standards for environmental protection in general and for water pollution control in particular.

The European Commission, through its programs PHARE and TACIS, provides technical and financial assistance to eligible countries to reach European environmental standards as one of the conditions for their accession to the European Union. In the frame of the PCU, UNDP/GEF provides equally assistance to the countries in transition with particular attention to reinforce regional cooperation and to reduce transboundary effects of water pollution in the Danube River Basin and the wider Black Sea Area.

The International Commission for the Protection of the Danube River (ICPDR) is the institutional mechanism to assure interregional coordination of water quality control and pollution reduction measures for efficient implementation of the Danube River Protection Convention (see proposed organizational chart Annex II). The main structures are the following;

The Secretariat supports the International Commission and its subsidiary bodies (Expert groups and ad-hoc Groups), organizes Steering Group meetings (heads of Delegations) or Plenary sessions of the IC and implements the respective recommendations and decisions;

The Conference of parties meets at ministerial level and sets the policy framework,

Three Experts Groups: Accidental Emission & Warning System (AEWS), Monitoring, Laboratory & Information Management (MLIM) and Emission Working Group (EMIS) assure regional cooperation and coordination of water quality and pollution control, accident warning and prevention, information management and implementation of pollution reduction measures. There exists probably the need to create management and implementation of pollution reduction measures. There exists probably the need to create a fourth group to assure efficient data management and the establishment of a Danube Information System.

 

The financial support for the above structure (administrative and operational costs) derives from the contribution of the member countries and is supposed to be paid, according to the terms of the Convention, in equal shares from each country. However, negotiations are under way to modify the contribution of the individual countries and to propose cost sharing in accordance with geographical, demographic and economic conditions (size of drainage area, population, GNP, etc.). The annual budget for the Secretariat of the IC is estimated at US$ 700,000 per year.

The Project Management Task force (PMTF) is an organizational structure derived from the current DREP Task Force and the Program Coordination Unit (CPU)⁵ . The PMTF is supposed to become a special supporting body established by the ICPDR together with International Financing Institutions, Donor Agencies and Non Governmental Organizations (NGO). The key role of the PMTF will be to coordinate international assistance, to support the development and practical implementation of action programs, to promote environmental investments and help secure technical assistance required by the participating countries. The members of the PMTF will be the participating countries (Country Program Coordinators - CPC), International Financing Institutions, Donor Agencies and Non Governmental Organizations (NGO).

To achieve its goals, the PMTF respectively the PCU is depending solely on external sources for financial support, coming currently from the EU (PHARE and TACIS) and the UNDP/Global Environmental Facility (GEF). During the period from 1992 to 1996 about 16.4 million US$ have been contributed from EU sources and 8.5 million US$ have been provided from the UNDP/GEF budget. For the actual period of 1997 to 1998 about 6 to 9.5 million US$ can be expected from the EU sources and 3.9 million US$ from the UNDP/GEF budget. Governments of participating countries provided substantial national expertise and financial and in kind contributions to the program activities.

Compared with the budget of the ICPDR, it is obvious that the PMTF has important financial means to accomplish its tasks in supporting the Convention and to promote planning and implementation of measures and projects for pollution reduction and environmental protection. While the financial and technical assistance is desirable, the role of the PMTF and its weight against the ICPDR is questionable. Participating countries and the Interim Secretariat of the IC have expressed their concerns.

Hence, it would be necessary to review institutional and legal conditions of the PMTF in respect to the Convention and to define clearly its relationship to the structures of the ICPDR. Also, it would be necessary to clarify the situation of NGO participation in the ICPRD in case that the PMTF, after withdrawal of donor support, would no longer be operational.

GEF’s assistance in the frame of the Danube River Environmental Program (DREP) started in its first phase in 1992 and concentrated on building regional cooperation for water management, identifying and evaluating water pollution problems and establishing a basin wide water quality monitoring strategy. The actual project promotes the development of a Danube River Pollution Reduction Program in line with the strategies of the Danube River Protection Convention. The project is executed in the institutional setting of the PCU/PMTF, but assures close cooperation at the national level with designated governmental structures (Country Program Coordinator) and at the central level with the ICPDR and the Secretariat. Considering the GEF operational strategies and the expressed needs for developing a comprehensive management tool, the project responds to global environmental objectives taking into account national and regional priorities for pollution reduction and protection of aquatic ecosystems in the Danube River Basin and in the Black Sea area.

There are, amongst others, four important GEF operational strategies which determine the methodological approach of project implementation (see chart Annex III):

2.1. Country driven initiatives: The responsibility for project implementation at the national level is given to the participating countries, in particular the national Country Program Coordinators, who will be in charge to prepare and to supervise implementation of all GEF project activities (up-date of National Reviews, organization of workshops, contribution to regional studies, etc.). In this task they will be assisted by national expert teams (water quality data, water engineering, financial analysis, social and economic studies). National strategies and actions for water pollution reduction, analysis of transboundary issues, etc. will be elaborated in the frame of national target oriented workshops, with the participation of all stakeholders from the public and the private sector.

 

2.2. Participatory approach: The organization of target oriented planning workshops at the national and regional levels shall assure wide participation of all stakeholders from the public and private sectors and facilitate consensus building. The results of these workshops will allow finalizing planning activities and to develop national and regional strategies and action programs in a participatory approach. Particular importance will be given to the reinforcement of NGO activities at national and regional levels and to assure their participation in planning and plan implementation activities. This will be achieved through national and regional consultation meetings and the revitalization of the Danube Environment Forum. Further measures to reinforce participation are the implementation of a GEF-Small Grants Program to support community based activities, and measures for general awareness raising through specific publications (Danube Watch) and the use of public mass media to report on special events and activities of the PMTF/PCU and the Convention.

 

2.3. Cooperation with other organizations: Within the frame of the assistance given to the ICPDR and in the frame of the PMTF/PCU as the coordinating mechanism, the GEF and the PHARE/TACIS project objectives and programs are complementary. Whereas PHARE/TACIS gives particular attention to the development of favorable environmental conditions in line with EU standards to facilitate accession to the EU, the GEF program aims to reinforce regional cooperation and to develop appropriate mechanisms to reduce transboundary effects of pollution in the Danube river area and the Black Sea. In the frame of the PCU, specific attention of GEF - PHARE/TACIS cooperation is given to the development of complementary actions concerning:

Development of information systems,

Identification of projects and development of programs taking into account different initiatives of donor agencies and ICPDR requirements,

Elaboration of regional studies concerning in particular the rehabilitation of wetlands,

Coordination of activities of the Danube River Environmental Program.

Cooperation also includes the reinforcement of inter-regional relations, in particular with organizations of the other river basin projects and institutions related to the Black Sea area and to other river basin management schemes, where exchange of information and experience enhances performance in the Danube project area.

 

2.4. Cost effectiveness to maximier gloabl environemtnal ebenfits: The results of the Transboundary Analysis and inparticulart the application of the danube water Quality Model (DWQM) as one of the possible indicators for prioritaeiation of internventions, sahll facilite to determine environemntal benefirts for alternative einvestment possibilites. the transboundary Analysi will allow to develop dasin wide pollution reduction strategies and to define regioanl and global (Blacj Sea) effects of proposed pollution reduction measures. these analystical rools will facilitate prioritization of actions and prkjects withith the frame of the Pollution Ereductionprogram, in aprticular in the Investment Portfolion which should ne the basis for furter investment decisions at national and regioanl elvel as well as the basis ofr international cooperation on prgramm implemntation.

Therefore special attention is given in the GEF project to the analysis of financing mechanisms and to the fdevelopmentnof the Danbube Environelmta Fund to facilitate program implemntation and financial supporty in particulart fdor projects responding -o regional concerns and eligible for GEF finahcial support. Howevern, the danube Environmental fund should also attact funds from various multilatral and bilateral finaincing institutuions to facilitate the implemntation of national prjects (point source rehabilitation), considereing the maximization of environemtal beenifts to the dabube river basin and the wider Black sdea aea.

 

3. Project objectives and planned activities to assure efficient implementation

Project objective: Definition and implementation of policies, strategies and actions for pollution reduction and sustainable management of international waters and ecosystems in the Danube River Basin and taking into account its effects on the Black Sea

Considering the Project objectives and the above described methodological approach, the following activities have been designed to obtain the expected results (see Annex IV on « Operational and Organizational Arrangements »):

Major activities executed at the national level concerning:

Organization of NGO participation in planning activities at national and regional levels,

Elaboration of national review (by national expert teams),

Elaboration of social and economic analysis (by national expert teams),

Organization of National Planning Workshops,

Preparation of project files to constitute national investment program,

Implementation of a Small Grants Program to reinforce NGO participation in community based pollution reduction activities.

Sector studies and other activities at the regional level concerning:

Development of the Danube Water Quality Model,

Wetlands Rehabilitation study,

Social and economic impact analysis (synthesis of national reports),

Development of financing mechanisms and Danube Environmental Fund,

Establishment of Danube Information System and reinforcement of public awareness raising.

Based on above results of national and regional planning activities, the essential outputs of the GEF program are expected from the following project activities:

Elaboration of the Transboundary Analysis (Target Oriented Planning Workshop),

Elaboration of Pollution Reduction Program (Target Oriented Planning Workshop),

Development of investment portfolio and preparation of International Donor’s Round Table conference.

Concerning the inter-regional cooperation between Danube River Basin and Black Sea countries, it is the immediate goal to prevent further degradation of natural ecosystems in the Black Sea and to improve pollution control and protection of natural ecosystems through the:

Development of institutional framework for inter-regional cooperation;

Development of standards and targets for pollution reduction;

Organization of Inter-regional Danube - Black Sea policy meetings.

Within the frame of the GEF project, and in accordance with the objectives of the Danube Protection Convention, all efforts will be undertaken to create institutional mechanisms and to develop common policies and targets for pollution reduction and protection of aquatic ecosystems.

The expected key results of the GEF planning process are:

a Pollution Reduction Program and revised SAP, indicating policies, strategies and actions in line with the Convention for transboundary pollution control, contribution to the preservation of Black sea natural ecosystems,

an investment portfolio presenting prioritized programs and projects for pollution control/reduction to be presented at an international round table donor’s conference,

financing mechanisms to facilitate national investments and international cooperation in implementing the Pollution Reduction Program.

 

Within the frame of the GEF Project Implementation Plan, the following key issues have to obtain special attention:

(I) Elaboration of Transboundary Analysis to define basin wide strategies for management of international waters and prevention/reduction of pollution

The Transboundary Analysis shall show the clear relation between sources of pollution (the causes) and the effects. Particular attention will be given to the identification of « hot spots », their transboundary implication and their environmental effect on ecosystems and on economic and human development. Besides, loads/concentration of nutrients will be analyzed, applying results of the Danube Water Quality Model with particular attention to the Black Sea ecosystems. Based on these results, strategies and actions for controlling and reducing pollution, preventing environmental degradation and protecting ecosystems and resources shall be determined in the frame of a target oriented workshop. Alternative solutions should be identified to prevent pollution at point sources and diffuse sources (which is more difficult) and to introduce remedial measures to reduce pollution, in particular nutrient concentration, through rehabilitation of wetlands and flood plains as natural nutrient sinks. The most cost-effective solution should be chosen to maximize regional and global benefits, considering also the effects on the Black Sea ecosystems.

 

(II) Elaboration of Danube Pollution Reduction Program

 

Proposals for a Danube Pollution Reduction Program, based on results of National Reviews (bottom-top approach), will be prepared and discussed in the frame of a regional target oriented workshop using logical framework technology. In this context, a commonly agreed investment program will be developed, responding to national priorities (hot spots) and regional concerns to reduce transboundary effects of water pollution and to assure environmental protection with outreaching effects to the Black Sea. These results will further allow elaborating an up-dated and revised version of the SAP as well as reviewing national policies, targets and programs.

 

Monitoring of the implementation process will show the achievement of targets in a given timeframe and allow regular update and adjustments of policies, strategies and actions in line with the objectives of the Danube River Protection Convention. Whereas the revised SAP will serve as the policy framework, the Pollution Reduction Program will be the implementation plan to monitor pollution reduction activities at the project level.

 

(III) Preparation of an Investment Portfolio with bankable projects

Given limited financial resources, there is a perceived need for a prioritized investment program that responds to identified pollution reduction targets. Investment projects will be evaluated and prioritized on the basis of cost effectiveness considering the level of possible pollution reduction and restoration of water quality and ecosystems. In this context, the Transboundary Analysis, respectively the DWQM, utilized as a permanent management tool, shall help to maintain agreed water quality standards at national and at regional levels.

A methodological approach and criteria for identifying, prioritizing and selecting projects will be developed, considering:

cost effectiveness to maximize environmental benefits at the national and regional level,

financial baseline contributions and needs for additional funding (incremental cost),

lending capacities from various countries.

The Investment Portfolio shall be a guideline for investment decisions at the national level. It shall further facilitate the contracting parties of the Convention to apply individually and in common for international assistance and financial support for the implementation of pollution reduction measures and projects of regional importance (transboundary pollution reduction and improvement water quality standards).

 

(IV) Development of financing mechanisms and conceptualization of the Danube Environmental Fund to facilitate implementation of the Pollution Reduction Program

 

Funding issues are of significant importance for the final success of the Pollution Reduction Program and the implementation of investment projects. In developing financing mechanisms and in conceptualizing the Danube Environmental Fund, the following key issues have to be taken into consideration:

Political and economic transition process: the countries in transition are in a very different status of political and economic development which makes it difficult to establish standardized funding strategies and mechanisms. Therefore it is necessary to primarily develop funding strategies and mechanisms at national level, with the option to adjust them further according to the degree of economic development and financial capacities;

Analysis of national funding concepts and regulations: Most of the countries in transition have established relatively appropriate national funding concepts and regulations. However, due to the uncertainty of revenues at the different public administration levels as well as the scarcity of funds, there is a low reliability of allocation of funds for environmental projects. In designing financing mechanisms these concepts and regulation should be taken into account to develop the most appropriate solution.

Lack of information on international co-funding opportunities: There is apparently also insufficient information and knowledge on potential international co-funding opportunities and conditions for financial support for project implementation. Therefore, it is an essential task for the current GEF project to improve transparency and to establish an adequate framework for cooperation with international funding institutions in particular in the frame of the Danube Environmental.

 

The expected result is to have precise information on financing mechanisms and data at country level and to develop adequate financing mechanisms based on national commitments (baseline contributions) and the most appropriate international financing conditions. The Danube Environmental Fund should respond to national demands and provide investment guidance under the best available conditions.

 

(V) Organization of International Donor Conference to assure commitment and cooperation of the international community

 

The organization of an International Donor’s Round Table Conference shall allow the participating countries to present to the international community the revised Strategic Action Plan and in particular policies and strategies developed in the Danube Pollution Reduction Program. Special attention shall be given to the presentation of the Investment Portfolio with bankable projects for pollution reduction and improved water management. The International Donor’s Round Table Conference is a possibility to establish a dialogue between the countries in transition and international financing institutions, to demonstrate national commitments and to negotiate modalities for financial support for the implementation of the Pollution Reduction Program. Concerning the transboundary nature of international waters, it is evident that national interests and regional or global concerns for environmental protection are pursuing the same goal to reduce water pollution, to improve water quality and to protect aquatic ecosystems in the Danube River Basin and in the Black Sea. International cooperation is a « sine que non » condition to reach this objective.

 

ANNEXES

Annex 1: Physical and Economic Key Indicators of Danube Basin Countries

Annex 2: Implementation of the Danube River Protection Convention: Proposed organizational chart

Annex 3: GEF Methodological Approach

Annex 4: Operational and Organizational Arrangement